National Plastic Industries Receives 'Hold' Rating Amid Bullish Trend and Attractive Valuations

National Plastic Industries, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved technically from being mildly bullish on August 22, 2024.
The stock has multiple bullish factors, including MACD, Bollinger Band, and KST. Additionally, with a ROCE of 13.7, the stock is currently trading at an attractive valuation with a 1.4 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

However, the company's profits have fallen by -60.4% over the past year, despite generating a return of 35.65%. The majority shareholders of National Plastic Industries are the promoters.

On the fundamental front, the company has a weak long-term strength with an average ROCE of 7.11%. Its net sales have also shown poor growth at an annual rate of -2.17%, and its operating profit has only grown at 4.92% over the last 5 years. The company also has a high debt to EBITDA ratio of 5.42 times, indicating a low ability to service debt.

In the latest quarter, the company's results have been flat, with a PAT of Rs 1.01 crore, which has seen a decline of -72.85%. The PBDIT for the quarter was also the lowest at Rs 1.51 crore, and the operating profit to net sales was at its lowest at 6.21%.

Overall, while the stock has shown a bullish trend and has attractive valuations, the company's weak long-term fundamentals and declining profits may be a cause for concern. Investors are advised to hold onto their positions for now and monitor the company's performance closely.